Virginia eyes online casino legalisation and gaming commission

Virginia lawmakers are likely to discuss multiple gambling issues this year, including online casino legalisation and the creation of a gambling commission.

Delegate Marcus Simon introduced HB 161 this week, which aims to legalise online casinos. Meanwhile, Delegate Paul Krizek plans on introducing a bill that would set up a Virginia Gaming Commission to oversee an industry that has expanded greatly in the state the past few years.

Existing gambling framework in Virginia

Virginia lawmakers authorised land-based casino gambling in 2019 and sports betting in 2020. Since then casinos have opened and online sportsbooks launched in the state. Casinos and sports betting are under the purview of the Virginia Lottery Board. The Virginia Racing Commission oversees live, historical and advanced deposit wagering horse racing, while the Virginia Department of Agriculture and Consumer Services regulates charitable gambling and daily fantasy sports.

Previous online casino efforts and study

Last year, Virginia lawmakers introduced two online casino bills. Simon introduced one bill, while Senator Mamie Locke sponsored the other. They pulled the bills early in the session with plans for studying the industry. The Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission held multiple hearings last year.

While there are online casino bills, multiple lawmakers have suggested a new regulatory agency is needed before further gambling expansion. Late last year, Virginia Public Radio reported the creation of the agency would be a legislative priority. Last year, former Republican Governor Glenn Youngkin hoped to establish the Virginia Gaming Commission in the budget. Democratic legislative leadership, with slim majorities in both chambers, rejected the idea.

Booming Virginia gambling industry

Krizek told iGB the transformation of the Virginia gambling industry is happening faster than anyone could have predicted.

There are three permanent casinos in the state, with two other temporary locations open or preparing to open. Krizek said two other potential sites are being considered. Among the other significant gambling entities he noted were:

  • 1,650 historical horse racing terminals at Rose Gaming Resort
  • Colonial Downs horse racing track that has 47 live racing days
  • Six charities running poker tournaments
  • 300 charitable bingo halls
  • 3,233 electronic pull tab machines at 297 locations
  • Online sports betting
  • Online daily fantasy sports

Krizek said the oversight by three agencies results in inconsistent rules and duplicative bureaucracy.

“The creation of a Virginia Gaming Commission is not about building more bureaucracy, it’s about promoting smarter government,” Krizek said. “A unified commission would streamline oversight by bringing all gaming under one roof, with consistent standards and enforcement. It would strengthen consumer confidence by ensuring transparency and fairness across all gaming platforms.

“The creation of the VGC will support economic opportunity in the commonwealth by establishing clear rules that help small businesses, labor unions, women and minority-owned firms, and local workers to compete on a level playing field.”

He said a commission could also address problem gambling prevention efforts and future forms of gambling, like online casinos.

“All are better handled with a one-stop agency,” he said.

Details of the new Virginia online casino bill

Simon floated a draft of his iCasino bill during the study hearing process last year.

Under HB 161, the Virginia Lottery Board would oversee the online casino industry. In the past, the Lottery Board objected to online casino expansion, suggesting the board is overburdened by the recent expansions.

Under the legislative proposal, the state’s casinos could operate up to three online skins. Each platform would carry a $2 million licence fee.

HB 161 sets a tax rate at 15%. The measure would dedicate 5% of tax revenue to the Problem Gambling Treatment and Support Fund.